Do You Assume Used EV Costs Will Drop By $4,000 In 3 Months?

Final Up to date on: fifth July 2025, 12:11 am

As famous earlier right now, Republicans in Congress determined to finish all EV tax credit on September 30, 2025. That features the $4,000 tax credit score for used electrical vehicles. In concept, while you purchase a used electrical automobile, it’s successfully $4,000 cheaper as a result of tax credit score.

The argument some individuals have made is that the used EV tax credit score simply raises used EV costs by $4,000. The argument is that persons are solely going to pay what they’ll pay on the used EV market, so if they’ll afford a $12,000 automobile, they’ll purchase a $12,000 automobile with no tax credit score or they’ll purchase a $16,000 automobile with a $4,000 tax credit score. Due to this fact, with no tax credit score, used automobile sellers will simply promote EVs for $4,000 much less.

Earlier than attending to ramifications of that if it’s true, I wished to ballot you readers to see what you considered this. Do you suppose that used EV costs will successfully drop by $4,000 on October 1 or so? Or do you suppose they received’t drop that a lot, if in any respect? The ballot embedded under (linked above) is only one quick query. Simply be sure you click on “Carried out” after answering the query.

If used automobile costs do drop — whether or not by $4,000 or $3,000 or $2,000 — bear in mind that there’s in fact one other aspect to such a transaction. There’s the vendor’s aspect. If the tax credit score was a ruse and didn’t really do something to assist used electrical automobile consumers, it actually should have helped individuals promoting their EVs — usually to purchase one other one. When the resale worth of their automobile is hundreds of {dollars} lower than it might have been, they’re both going to lose more cash or they’re simply going to carry off and never promote their EV, and never purchase a brand new one.

This may be even worse, as a result of this can considerably damage the electrical automobile market total — and also will thus result in fewer used electrical vehicles down the street for second-hand consumers. Yikes.

Anyway, I expect to find out what you all take into consideration this matter, and can report again the ballot ends in a number of days or so.